STRATEGIC MANAGEMENT and ORGANISATIONAL DYNAMICS T O S h e R T C G R The Challenge of Complexity h A A a T N ll E e I RALPH D. STACEY n S G g A I e C 6th Edition T o f I M O C o N A m A N ‘Stacey’s defining strength is his critical approach, which challenges students to make sense of contested p L A l knowledge. His passionate interest in the subject is reflected in the dynamic and exciting development e G x D of the text and communicated through a remarkably clear writing style.’ i E t Y y M Steve Hills, Sheffield Hallam University N A E ‘Strategic Management and Organisational Dynamics is a landmark academic text. As well as continuing to M N offer a well-argued critique of conventional management wisdom, it provides a unique and authoritative treatise T I on what is a truly distinctive application of the complexity sciences to organizational leadership and change.’ C a S n Chris Rodgers, organizational consultant and author of Informal Coalitions d Strategic Management and Organisational Dynamics remains unique amongst strategic management textbooks by taking a refreshingly alternative look at the subject. Stacey challenges the conceptual orthodoxy of planned strategy, focusing instead on the influence of more complex and unstable forces in the development of strategy. Ideal for advanced undergraduate and postgraduate study, this critically detailed account deals with current issues, raising the challenge of complexity within practice and theory. R A L New to this edition: P H • A new introduction outlining the book’s unique approach and remit. • A new chapter on dominant discourse and what evidence there is for its prescriptions. D . • A new chapter which blends second order systems thinking and communities of practice S with new material on social constructionist approaches and labour process theory. T • A focus on what strategic management might mean from the perspective of complex responsive processes. A C E Ralph D. Stacey is Professor of Management at the Business School, University of Hertfordshire. He is a Y supervisor on the innovative Doctor of Management programme at the University of Hertfordshire and author of a number of books and papers on complexity and organisation. 6th Edition Adrian Stacey Coral Picture © www.pearson-books.com Ocean Picture iStockphoto © CVR_STAC5596_06_SE_CVR.indd 1 28/9/10 13:41:59 A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page i Strategic management and organisational dynamics A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page ii We work with leading authors to develop the strongest educational materials in business and management bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high-quality print and electronic publications which help readers to understand and apply their content, whether study- ing or at work. To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoned.co.uk. A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page iii Strategic management and organisational dynamics The challenge of complexity to ways of thinking about organisations Sixth Edition Ralph D. Stacey A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page iv Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published under the Pitman Publishing imprint 1993 Second edition published 1996 Third edition published 2000 Fourth edition published 2003 Fifth edition published 2007 Sixth edition published 2011 © Ralph D. Stacey 1993, 1996, 2000, 2003, 2007, 2011 The right of Ralph D. Stacey to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. 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ISBN 978-0-273-72559-6 British Library Cataloguing-in-Publication Data A catalogue record f or this book is available from the British Library Library of Congress Cataloging-in-Publication Data Stacey, Ralph D. Strategic management and organisational dynamics : the challenge of complexity to ways of thinking about organisations / Ralph D. Stacey. – 6th ed. p. cm. ISBN 978-0-273-72559-6 (pbk.) 1. Strategic planning. 2. Organizational behavior. I. Title. HD30.28.S663 2011 658.4′012–dc22 2010029934 10 9 8 7 6 5 4 3 2 1 15 14 13 12 11 Typeset in 10/12.5pt Sabon by 35 Printed by Ashford Colour Press Ltd., Gosport A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page v To the memory of my mother Auriel A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page vi A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page vii Brief contents List of boxes xv List of tables xvi Preface xvii 1 Strategic management in perspective: a step in the professionalisation of management 2 2 Thinking about strategy and organisational change: the implicit assumptions distinguishing one theory from another 26 Part 1 Systemic ways of thinking about strategy and organisational dynamics 3 The origins of systems thinking in the Age of Reason 46 4 Thinking in terms of strategic choice: cybernetic systems, cognitivist and humanistic psychology 64 5 Thinking in terms of organisational learning and knowledge creation: systems dynamics, cognitivist, humanistic and constructivist psychology 98 6 Thinking in terms of organisational psychodynamics: open systems and psychoanalytic perspectives 126 7 Thinking about strategy process from a systemic perspective: using a process to control a process 148 8 A review of systemic ways of thinking about strategy and organisational dynamics: key challenges for alternative ways of thinking 172 9 Extending and challenging the dominant discourse on organisations: thinking about participation and practice 198 A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page viii viii Brief contents Part 2 The challenge of complexity to ways of thinking 10 The complexity sciences: the sciences of uncertainty 234 11 Systemic applications of complexity sciences to organisations: restating the dominant discourse 262 Part 3 Complex responsive processes as a way of thinking about strategy and organisational dynamics 12 Responsive processes thinking: the interplay of intentions 296 13 The emergence of organisational strategy in local communicative interaction: complex responsive processes of conversation 328 14 The link between the local communicative interaction of strategising and the population-wide patterns of strategy 350 15 The emergence of organisational strategy in local communicative interaction: complex responsive processes of ideology and power relating 374 16 Different modes of articulating patterns of interaction emerging across organisations: strategy narratives and models 398 17 Complex responsive processes of strategising: acting locally on the basis of global goals, visions, expectations and intentions for the ‘whole’ organisation over the ‘long-term future’ 434 18 Complex responsive processes: implications for thinking about organisational dynamics and strategy 464 References 496 Index 521 A01_STAC5596_06_SE_FM.QXD 9/6/10 11:30 AM Page ix Contents List of boxes xv List of tables xvi Preface xvii 1 Strategic management in perspective: a step in the professionalisation of management 2 1.1 Introduction 2 1.2 The origins of modern concepts of strategic management: the new role of leader 6 1.3 Ways of thinking: stable global structures and fluid local interactions 15 1.4 Outline of the book 20 Further reading 25 Questions to aid further reflection 25 2 Thinking about strategy and organisational change: the implicit assumptions distinguishing one theory from another 26 2.1 Introduction 26 2.2 The phenomena of interest: dynamic human organisations 27 2.3 Making sense of the phenomena: realism, relativism and idealism 31 2.4 Four question s to ask in comparing theories of organisational strategy and change 36 Further reading 38 Questions to aid further reflection 38 Part 1 Systemic ways of thinking about strategy and organisational dynamics 3 The origins of systems thinking in the Age of Reason 46 3.1 Introduction 47 3.2 The Scientific Revolution and rational objectivity 48 3.3 The eighteenth-century German philosopher Immanuel Kant: natural systems and autonomous individuals 50
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